Buying Tips
Buying Tips
Basic service providers can be differentiated on the basis of area of
coverage and service provisioning. Depending on the area under use, one can
categorize the service provider in terms of regional or an all-India player.
BSNL and Reliance fall under the all-India service provider category, whereas
companies Shyam Telelink, and HFCL Infotel are operating in just one circle
each. Tata and Bharti are midway as far as the scales of operation are
concerned. In terms of service provisioning, we have an integrated player who
provides all types of services—basic, cellular, Internet, DLD, ILD, and
broadband. Companies like BSNL, Reliance, Bharti, and Tata fall under this
category, while Shyam, and HFCL, provide some portions of the above services.
Since a reliable telecom infrastructure is a must for any corporate for its
smooth functioning, one has to be very careful in choosing the best service
provider, considering the above service differentials, such that voice and data
needs of corporates can be addressed in the best possible way. It is not easy to
switch from one service provider to another in the long run, as one has to
write-off installation and maintenance costs. Therefore, it becomes all the more
important to choose the best service provider.
Even BSNL, the incumbent operator, is moving towards one-point solution for
enterprise customers and so is the Tata Group.
n Suite
of Services: At present, in most of the state circles, corporates do not
have many options but have to be satisfied with whatever little that is
available, either through an incumbent or through private service provider, in
the state. But with the coming of Reliance and Tata one will have a lot of
option to choose in terms of service. Integrated telecom players have an
advantage as they can cater to a complete range of voice and data needs of
corporates. Since their infrastructure is available throughout the country, they
can provide an end-to-end connectivity.
Service providers are currently offering services like ISDN, leased line,
Internet leased ports, DSL, VPN, data center, and co-location facility.
Currently, all operators are either offering or are planning to offer the above
suite of services. Bharti, Reliance, and Tata do have an advantage in comparison
to other service providers—they can provide leased line facility as they are
also DLD players.
n Degree of
Management: Enterprise customers should focus on those service providers who
can provide end to end solutions rather than piecemeal solutions whether it is
services or bandwidth. Not all companies are providing solution. In most of the
cases, the service provider can put the blame on BSNL network as it is a good
excuse for the service provider.
However that may not be the case always.
n Coverage
Area: If a service provider has an all-India infrastructure, corporates have
an advantage, as they have only one point of contact for all their communication
needs. And if corporates desire to expand their office in a particular city,
they have to just make a call and the connection is provided. The other
advantage is that the service provider can optimize the network in the best
possible way, so that communications cost can be minimized and the network
reliability can be increased. Even installation and AMC costs can be reduced.
Service providers can improve quality-of-service (QoS) because they can provide
an end-to-end solution and thus provide QoS on end-to-end circuit rather than
only on those circuits where they have a network presence. Small regional
players, in order to compete with all-India players, should also start giving
end-to-end QoS and for this, they have to enter into collateral arrangement with
other regional and all-India service providers. In the case of regional players
it becomes difficult to provide the same SLA (service level agreement) as they
have to ride on different service provider for different region.
| Top
Basic Service Providers (in subscriber terms) |
| Rank |
Company |
No
of Subscribers |
Net Addition |
Growth |
|
2001-2002* |
2000-01** |
2001-02 |
(in %) |
| 1 |
BSNL |
33,415,197 |
28,109,179 |
5,306,018 |
18.87 |
| 2 |
MTNL |
4,542,928 |
4,334,729 |
208,199 |
4.8 |
| 3 |
Bharti Telenet |
160,000 |
125,000 |
35,000 |
28 |
| 4 |
Hughes Tele |
159,500 |
69,599 |
89,901 |
129.16 |
| 5 |
Tata Tele |
150,000 |
58,709 |
91,291 |
155.49 |
| 6 |
HFCL Infotel |
65,000 |
13,326 |
51,674 |
387.6 |
| 7 |
Shyam Tele |
30,000 |
13,000 |
17,000 |
130.76 |
| 8 |
Reliance Telecom |
NA |
160 |
NA |
NA |
| NA
stands for not available |
*Stands for subscribers as on 31.03.02 |
**Stands for subscribers as on 31.03.01 |
V&D
Estimates |
On the QoS front, corporates should look forward for error-free,
crystal-clear voice without noise and connection drops. On voice and data
fronts, one has to look for error-free and synchronized transfer of data.
n Provisioning
Time: For leased line as well as normal telephone connections service
providers are taking a lot of time. The service provider that can reduce this
time has a clear edge over others.
| Subscriber
Base of Private Operators (as on 31 March, 2003) |
| Company |
Circle |
Wireline |
FWT |
WLL
(M) |
Total |
| Bharti
Telenet |
Delhi |
32,402 |
0 |
0 |
32,402 |
| Haryana |
31,092 |
0 |
0 |
31,092 |
| Karnataka |
23,883 |
0 |
0 |
23,883 |
| Tamil Nadu |
50,910 |
0 |
0 |
50,910 |
| MP |
165,618 |
30,115 |
0 |
195,773 |
| Bharti
Telenet |
All |
303,905 |
30,115 |
0 |
334,020 |
| HFCL
Infotel |
Punjab |
61,144 |
17,613 |
35,858 |
114, 615 |
| Reliance
Telecom |
Gujarat |
300 |
700 |
0 |
1,000 |
| Shyam
Telelink |
Rajasthan |
26,171 |
3,536 |
29,637 |
59,344 |
| Tata
Teleservices |
AP |
91,244 |
59,540 |
94,421 |
245,205 |
| Delhi |
648 |
1,619 |
8,938 |
11,205 |
| Gujarat |
243 |
2,999 |
2,670 |
5,912 |
| Karnataka |
0 |
5,679 |
5,453 |
11,132 |
| Tamil Nadu |
90 |
6,662 |
4,280 |
11,032 |
| Tata
Teleservices |
All |
92,225 |
76,499 |
115,762 |
284,486 |
| Total |
642,786 |
178,831 |
181,257 |
1,002,874 |
|
Source: ABTO
|
n Pre-sales/commissioning/after-sales
Support: Those service providers who can outscore on pre-sales,
commissioning and after sales support will definitely have an edge over others.
The most crucial factor is the after sales support because most of the service
providers focus more on the first two parameters. They have to focus on customer
support because if the link goes down it has to be activated at the earliest and
they should have a 24*7 help desk service that helps in proactive network
monitoring and support.
| VPT
Status* of Service Providers |
| Companies |
Target |
Installed |
| BSNL |
514,631 |
468,016 |
| Bharti
Telenet |
16,500 |
348 |
| HFCL
Infotel |
5,442 |
32 |
| Hughes
Tele.com |
25,760 |
161 |
| Reliance
Telecom |
8,635 |
2 |
| Shyam
Telelink |
31,834 |
249 |
| Tata
Teleservices |
9,635 |
114 |
| *VPT
status as on 30 April 2002 |
V&D
Estimates
|
|
n Network
Uptime: Today, service providers provide SLA up to 95–98 percent, but
still they have to go a long way before they can achieve a reliability of 99
percent and above. Corporates have to see whether the network is fully redundant
and provides an alternate path when the network is down. Corporates are
interested in signing a single SLA with the service provider rather than signing
many SLAs, as in the past, with different service providers. This simplifies the
matter for corporates as now they have to contact only one agency for all their
communication needs. In case of a failure, the service provider can be bound by
stiff penalty clauses, and thus can be asked to deliver what was promised so
accountability can be fixed.
|
|
| Top 5 Factors Affecting Purchase Decisions |
| Rank |
Factors |
| 1 |
Brand name/company image |
| 2 |
Wide
range of product/services |
| 3 |
Company is part of large group |
| 4 |
Offers value for money product/services |
| 5 |
Customer oriented |
|
n Quality-of-Service:
The only differentiating factor between service providers is
quality-of-service. The important parameters are mean time to repair, single
toll-free number, network optimization through the network monitoring center, a
similar QoS in all centers, end-to-end QoS by opting for collateral arrangement
with different service providers.
| ARPU
Comparison of SPs |
| Companies |
ARPU
|
DEL: Employee
|
| a |
(per month) |
Ratio |
| BSNL |
586.06 |
92.75 |
| Bharti
Telenet |
843.75 |
457.14 |
| HFCL
Infotel |
1,025.64 |
95.87 |
| Hughes
Tele.com |
1,319.22 |
191.7 |
| MTNL |
1,127.59 |
74.78 |
| Shyam
Telelink |
1,000.00 |
83.33 |
| Tata
Teleservices |
832.77 |
266.66 |
|
V&D
Estimates
|
|
n Value-added
Services: With corporates having varying needs, many service providers help
corporates go for a cost-effective network, one that is robust and reliable, by
providing free consultancy. With intelligent (IN) switches coming in, service
providers can provide a number of value-added features that come through the
switch, and other features or services that can be integrated, once there is a
demand for those services in the market.
n Pricing: In
basic services, the prices are presently regulated by the regulator so not much
can be done on this front.. But the enterprise customer should focus more on the
hidden costs and discount schemes available with different service providers.
The corporate must consider the minimum hidden costs, such as interest free
registration, activation charges, deposit for services, administrative costs,
and add-on-service.
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